TCS

13 Jan 2022 , 09:42 AM

TCS for the quarter ended Dec 2021 registered a consolidated sales of Rs 48885 crore, a growth of just 4.3% QoQ and 16.4% yoy basis. On USD terms the revenue for the quarter was up by 3.0%QoQ basis and 14.4% YoY basis. On CC basis the USD revenue growth was 15.4% YoY. Eventually the net profit (after MI) was Rs 9769 crore, a growth of 1.5% QoQ basis and +12.3%YoY basis.

Consolidated quarterly performance QoQ comparison

Net sales (including other operating income) of Tata Consultancy Services has increased 4.31% to Rs 48885 crore.  Revenue growth was broad based with all the verticals growing above 15% in CC terms on YoY comparison.

Operating profit margin has declined from 27.99% to 27.48%, leading to 2.42% rise in operating profit to Rs 13,433.00 crore.  Employee cost decreased from 56.30% to 55.58%.   Other expenses rose from 15.72% to 16.95%.   Software technology development services cost rose from 0.45% to 0.88%.  

Other income rose 8.46% to Rs 1205 crore.  PBIDT rose 2.89% to Rs 14387 crore.  Provision for interest rose 76.76% to Rs 251 crore.  

PBDT rose 2.14% to Rs 14387 crore.  Provision for depreciation rose 7.17% to Rs 1196 crore.  

Profit before tax grew 1.71% to Rs 13,191.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 3385 crore, compared to Rs 3316 crore.  Effective tax rate was 25.66% compared to 25.57%.

Minority interest increased 27.59% to Rs 37.00 crore.  Net profit attributable to owners of the company increased 1.51% to Rs 9,769.00 crore.  

Promoters stake was 72.19% as of 31 December 2021 ,compared to 72.19% as of 30 September 2021 .  Promoters pledged stake was 0.47% as of 31 December 2021 ,compared to 0.47% as of 30 September 2021 .  

Consolidated Quarterly Result YoY comparison

Net sales (including other operating income) of Tata Consultancy Services has increased 16.35% to Rs 48885 crore.  

Operating profit margin has declined from 29.06% to 27.48%, leading to 10.03% rise in operating profit to Rs 13,433.00 crore.  Employee cost decreased from 55.77% to 55.58%.  Other expenses rose from 15.18% to 16.95%.   Software technology development services cost fell from 0.94% to 0.88%.   

Other income rose 74.38% to Rs 1205 crore.  PBIDT rose 13.48% to Rs 14638 crore.  Provision for interest rose 37.16% to Rs 251 crore.  

PBDT rose 13.14% to Rs 14387 crore.  Provision for depreciation rose 16.80% to Rs 1196 crore.  

Profit before tax grew 12.82% to Rs 13,191.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 3385 crore, compared to Rs 2965 crore.  Effective tax rate was 25.66% compared to 25.36%

Consolidated year-to-date performance.

Net sales (including other operating income) of Tata Consultancy Services has increased 17.17% to Rs 141163 crore.  

Operating profit margin has declined from 28.01% to 27.78%, leading to 16.20% rise in operating profit to Rs 39,212.00 crore.  Employee cost decreased from 56.60% to 56.11%.   Other expenses rose from 15.39% to 16.12%.   Software technology development services cost fell from 0.84% to 0.64%.   

Other income rose 37.86% to Rs 3037 crore.  PBIDT rose 17.53% to Rs 42249 crore.  Provision for interest rose 8.02% to Rs 539 crore.  

PBDT rose 17.66% to Rs 41710 crore.  Provision for depreciation rose 12.98% to Rs 3387 crore.  

Profit before tax grew 18.09% to Rs 38,323.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 9833 crore, compared to Rs 7953 crore.  Effective tax rate was 25.66% compared to 25.46%.

Minority interest decreased 7.29% to Rs 89.00 crore.  Net profit attributable to owners of the company increased 22.50% to Rs 28,401.00 crore.  

Promoters stake was 72.19% as of 31 December 2021 ,compared to 72.05% as of 31 December 2020 .  Promoters pledged stake was 0.47% as of 31 December 2021 ,compared to 2.94% as of 31 December 2020 .  

Others:

Buyback: The board has announced buyback valued at Rs 18000 cr at Rs 4500 per share.

Dividend: The board of directors have declared a second interim dividend of Rs 7 per equity share.

Management Commentary:

Commenting on the performance Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: Our continued growth momentum is a validation of our collaborative, inside-out approach to our customers business transformation needs. Customers love our engagement model, our end-to-end capability, and our can-do approach to problem solving. While mapping out their innovation and growth journeys, we are also helping them executive new age operating model transformations to support those journeys.

N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: We continued our focus on growing organically and on developing the talent, methodologies, and toolkits for an ever-evolving technology landscape. This, coupled with our contextual knowledge and the passion and commitment of thousands of TCSers enabled us to deliver cutting edge solutions during the quarter, and help our clients realize speed value. We are also delighted to cross another important milestone in our journey, hitting the $ 25 billion revenue mark in CY2021.

Samir Seksaria, Chief Financial Officer, said: Our sustained investment in our talent has helped us power strong growth despite a challenging supply environment . We remain focused on long term talent development as well as on tactical measures to mitigate the talent churn. We have exercised various operating levers in Q3 to mitigate the talent churn. We have exercised various operating levers in Q3 to mitigate costs and manage our employee expense.

Tata Consultancy Services: Consolidated Financial Results

 

	2112 (3)	2109 (3)	Var. (%)	2012 (3)	Var. (%)	2112 (9)	2012 (9)	Var. (%)	2103 (12)	2003 (12)	Var. (%)
Sales	48885	46867	4.3	42015	16	141163	120472	17	164177	156949	5
OPM (%)	27.5	28.0		29.1		27.8	28.0		28.4	26.8
OP	13433	13116	2	12208	10	39212	33745	16	46546	42109	11
Other inc.	1205	1111	8	691	74	3037	2203	38	3134	4592	-32
PBIDT	14638	14227	3	12899	13	42249	35948	18	49680	46701	6
Interest	251	142	77	183	37	539	499	8	637	924	-31
PBDT	14387	14085	2	12716	13	41710	35449	18	49043	45777	7
Dep.	1196	1116	7	1024	17	3387	2998	13	4065	3529	15
PBT	13191	12969	2	11692	13	38323	32451	18	44978	42248	6
EO Exp	0	0		0		0	1218		1218	0
PBT after EO	13191	12969	2	11692	13	38323	31233	23	43760	42248	4
Tax	3385	3316	2	2965	14	9833	7953	24	11198	9801	14
PAT	9806	9653	2	8727	12	28490	23280	22	32562	32447	0
MI	37	29	28	26	42	89	96	-7	132	107	23
Net Profit	9769	9624	2	8701	12	28401	23184	23	32430	32340	0
EPS (Rs)*	105.6	104.0		94.1		102.3	86.8		90.1	87.4
* On current Paid up equity capital of Rs 370 crore, Face value Re 1, Figures in crore EO: Extraordinary items EPS is adjusted after EO and relevant tax Source: Capitaline Databases

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